Best Egg is a trademark of Marlette Funding LLC, a national lender of unsecured loans that was founded in 2014 by a group of former Barclays Plc bankers. In just 10 months, Best Egg arranged $200 million in consumer loans. It took LendingClub 5 years to reach that milestone. As of November 2016, Best Egg has issues over $2 billion in loans. Best Egg is based in Wilmington, Delaware and has an A+ rating with the BBB.
How Does Best Egg Work?
Best Egg provides a marketplace to connect investment managers, banks and other financial institutions with borrowers. It is similar to the service offered by Prosper and LendingClub. However, Best Egg does not allow small investors to provide funding and requires lenders to buy only whole loans. Another difference is that Best Egg aligns its interests with investors by taking on some of the risk of a loan defaulting while also taking a greater share of the profits.
Loan applications are processed online and qualified borrowers could have their funds deposited in as little as a day. Unlike other loan marketplaces that require a waiting period to find investors to take on a loan, Best Egg has large institutions ready to fund qualified applicants. All loans are made by Cross River Bank, a New Jersey chartered bank that is insured by the FDIC.
What Are The Interest Rates?
Interest rates range from 5.99% to 29.99% APR and are fixed during the life of the loan. There is also a 1% to 5% origination fee. Best Egg doesn't specify the criteria borrowers must meet to qualify for its best rates. Depending on your credit profile you could get an excellent rate that rivals what you can expect from banks and credit unions or one that is as high as the worst of credit cards.
How Much Money Can I Borrow?
Loan amounts with Best Egg range from $2,000 to $35,000. Borrowers can choose between a 3 or 5 year term. Notice those are the only two terms you can choose from and that the 5-year term always comes with a 4.99% origination fee. However, there are no prepayment penalties, so borrowers are not charged additional fees for making extra payments or paying off the entire balance early.
In Massachusetts, the minimum loan amount is $6,000, and in Georgia it is $3,000.
Which States Does Best Egg Operate In?
Best Egg operates in all states except Kansas
What Is the Application Process Like?
Best Egg's application form is entirely online and offers one of the simplest and fastest routes to an online loan. Approvals are fast, if you meet Best Egg's loan requirements. This is because unlike other loan marketplaces, Best Egg has investors who have pre-approved borrowers that meat a certain criteria.
How Is Best Egg Better than Other Lenders?
Best Egg offers fast loans with fixed interest rates and fixed monthly payments. It is a huge benefit to know your fixed rate and what your monthly payments will be up front. If your credit is good, you can qualify for interest rates as low as 5.99%. There is an origination fee of 1% to 5% to consider, which is set at 4.99% for borrowers with a 5-year term. However, even the higher rates are competitive and loan approvals are fast because Best Egg has partnered with large financial institutions that are ready to approve eligible applicants.